British Prime Minister Keir Starmer began a two-day visit to Indiaon Wednesday with the aim of building on the trade deal signed between the countries in July.
He was joined by more than 100 leaders from the business, cultural, and university sectors in what the UK government dubbed the largest British trade mission ever.
Upon arrival in Mumbai, Starmer told the trade mission delegates that the deal “provides huge opportunities,” adding that he had asked his team to implement the deal as “quickly as humanly possible.”
“Our job is to make it easier for you to seize the opportunities,” Starmer encouraged the businessmen. “On the plane home, I want each of you to tell me what you got out of this trip — a deal, a contact.”
“This is a wonderful opportunity. Let’s go out and seize it,” he added, calling the deal “launchpad for growth.”
What is the trade deal about?
After three years of intermittent negotiations, Britain and India concluded talks on the trade pact in May. Both sides hastened their efforts to reach an agreement amid the tariff turmoil unleashed by US President Donald Trump.
In July, a free trade agreement (FTA) was signed during Indian Prime Minister Narendra Modi’s visit to London. The agreement reduces tariffs on goods ranging from textiles to whiskey and cars, allowing businesses to access more markets.
India is one of the world’s biggest whisky markets. Tariffs on whisky and gin are to be halved from 150% to 75% before falling to 40% by the tenth year of the deal, New Delhi will also cut tariffs on cars to 10% from over 100% at present.
On the other side, 99% of Indian exports to the UK will face zero tariffs. Notably, Britain will remove a tariff on textile imports, benefiting India’s large garment industry.
The deal aims to increase bilateral trade by an additional 25.5 billion pounds (€29.5 billion or $34 billion) by 2040.
“It’s the biggest deal we’ve struck since we left the EU,” Starmer said, calling the India-UK FTA “hugely important.”
Starmer to meet with Modi on Thursday
Starmer will hold bilateral talks with Modi on Thursday. Both sides have expressed their intention to ratify the deal and bring it into effect within the next year.
Modi said he was looking forward to Thursday’s meeting with Starmer and advancing bilateral relations.
However, the trade deal will not be the only topic of conversation between the two leaders. Modi’s close relationship with Russian President Vladimir Putin may complicate their discussions.
India continues to purchase oil from Moscow despite Western nations’ efforts to boycott Russia’s war machine. As a result, Delhi has faced sanctions from Trump.
Edited by: Sean Sinico
